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Topic	Corporate monopsonies are hurting wages according to Goldman-Sachs
Balrog0 08/17/18 12:14:59 PM #3:	As big, highly profitable companies power increases, there is a risk the economy may suffer. The IMF argues, for example, that innovation and investment may ultimately fall after an initial spike as industries become highly concentrated and big companies rest on their laurels. While bigger corporate mark-ups are initially associated with higher investment and R&D, this reverses when market power becomes too strong, said Mr Leigh. Jason Furman of the Peterson Institute for International Economics and Peter Orszag, a managing director at Lazard Freres, have argued that reduced competition and depressed dynamism in the economy have contributed to inequality and poor productivity growth. The drivers behind increasing corporate concentration are difficult to untangle. Part of the explanation might stem from new technologies that were conferring advantages on successful companies in so-called winner takes most markets, said Mr Autor. His research finds that the growth of concentration is disproportionately apparent in industries experiencing rapid technological change. Some politicians and analysts say regulatory policy is also an important part of the phenomenon. They argue, for instance, that authorities have permitted too many mergers and done too little to crack down on overly powerful companies. There has to be a reconsideration of antitrust law to be more mindful of the costs of these mergers and acquisitions, said Ro Khanna, a Democratic congressman for California. He stressed that it was sloppy thinking to argue that big was necessarily bad, adding: We should be more precise and look at whether there is an anti-competitive behaviour. The question is at the margin: are you allowing mergers you would not have allowed before? said Mr Furman. --- But to you who are listening I say: Love your enemies, do good to those who hate you, bless those who curse you, pray for those who mistreat you. <cite>Balrog0 posted [p:907048092] in Corporate ... [t:76911436]...</cite> <quote> As big, highly profitable companies power increases, there is a risk the economy may suffer. The IMF argues, for example, that innovation and investment may ultimately fall after an initial spike as industries become highly concentrated and big companies rest on their laurels. While bigger corporate mark-ups are initially associated with higher investment and R&D, this reverses when market power becomes too strong, said Mr Leigh. Jason Furman of the Peterson Institute for International Economics and Peter Orszag, a managing director at Lazard Freres, have argued that reduced competition and depressed dynamism in the economy have contributed to inequality and poor productivity growth. The drivers behind increasing corporate concentration are difficult to untangle. Part of the explanation might stem from new technologies that were conferring advantages on successful companies in so-called winner takes most markets, said Mr Autor. His research finds that the growth of concentration is disproportionately apparent in industries experiencing rapid technological change. Some politicians and analysts say regulatory policy is also an important part of the phenomenon. They argue, for instance, that authorities have permitted too many mergers and done too little to crack down on overly powerful companies. There has to be a reconsideration of antitrust law to be more mindful of the costs of these mergers and acquisitions, said Ro Khanna, a Democratic congressman for California. He stressed that it was sloppy thinking to argue that big was necessarily bad, adding: We should be more precise and look at whether there is an anti-competitive behaviour. The question is at the margin: are you allowing mergers you would not have allowed before? said Mr Furman. --- But to you who are listening I say: Love your enemies, do good to those who hate you, bless those who curse you, pray for those who mistreat you.</quote> ... Copied to Clipboard!
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